Economics · Monetary Policy
Which statement accurately describes the primary effect of an increase in the Repo Rate by the central bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1There is no effect on the money supply
- 2The money supply will increase initially and then decrease
- 3The money supply in the country will increase
- 4The money supply in the country will decrease✓
Correct answer
The money supply in the country will decrease
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